Dioni Elche, Davide Consoli, Mabel Sánchez-Barrioluengo
This paper analyses the interdependency between manufacturing and KIBS by focussing on two questions: which manufacturing industries are complementary with KIBS development? And, do cross-sectoral interdependencies exhibit geographical heterogeneity? We elaborate an empirical analysis of employment data of 279 municipalities in Spain over the period 1981-2011. Our first finding is that the typology of manufacturing activities that have positive employment effect ranges between two opposite poles: either well-established (viz. supplier-dominated) or emergent (viz. science based) industries. Further, and coherent with prior literature, we find that the overall job multiplier effect of manufacturing on KIBS is most prominent in areas with denser agglomeration.